Community Answers

1. 

   3-31-11

   Sean L says:

   100% is going to be hard to come by these days, even with excellent credit. you can still do 97.75% on an FHA purchase, but it’s got to be a home you plan on living in/primary residence……

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2. 

   3-31-11

   I Buy And Sell Houses says:

   I’m a Realtor and real estate investor in Fairfax. (Not a plug: Just a disclaimer.) I’m not aware of any lenders offering 100% LTV in Northern Virginia, or anywhere else.

   You can come pretty close, though. For example, with an FHA loan, you can get 97% funding. That drops to 96.5% in January.

   So, how do you cover the other 3%? Well, you can’t use it as downpayment, but certainly your offer should ask the seller to cover your closing costs.

   But for the remaining 3%: Consider an equity-share arrangement. Find someone else to lend you the 3%. In an equity share, they’d own a specified fraction of your new townhouse, and when you sell they’d receive a portion of the proceeds.

   Or find an investor to lend you the 3% secured by a second mortgage, with a generous pay-back to the investor. It’d have to be generous, since there’d be really no equity as security. But if you got an FHA mortgage at, say, 6%, and a second mortgage at, say, 12%, your overall effective rate would still be very competitive.

   Or find a Realtor willing to lend you their commission, either secured by a second or in return for a portion of equity. I was able to buy my first house (in Falls Church) that way.

   Another possibility is to look for owner financing. There are lots of possibilities here–traditional owner financing, lease-options, lease-purchases, and Subject To transactions. A growing number of owners are willing to do owner-financing and lease-options because they’re unable to sell their homes conventionally.

   So, there are a lot of possibilities. However, finding a conventional lender willing to lend 100% just doesn’t exist any more.

   Hope that helps.

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3. 

   3-31-11

   Real Estate Guy says:

   Go FHA with 3% down. 100% loans are NO LONGER.

   The FHA in NoVA is in the 700,000 range. So you don’t have a problem.

   Conforming mortgages will require 10% down. We are in a declining market.

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4. 

   3-31-11

   Jay S says:

   There are 2 loan programs available that offer 100% cltv but you can not own any other properties for 1 and the other has specific guide lines for income and ownership so your best option is an FHA loan.
   Rates are awesome right now(5.375 to 5.5% on a 30 year fixed)

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